7/25/2019 Dole Issues Advisory on Disposal of Wages and
Allowable Deductions
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DOLE ISSUES ADVISORY ON DISPOSAL OF WAGES AND ALLOWABLE
DEDUCTIONS
Department of Labor and Employment has issued Labor Advisory No.
11 series of 2014 on Non-interference in the
Disposal of a!es and Allo"able Deductions pursuant to the
Article 11# to 11$ of the Labor %ode of the &hilippines
as amended and 'ections ( to 11) *ule +,,, of the ,mplementin!
*ules of oo ,,, of the Labor %ode.
D/LE-%A* reiterates on the !uidin! principle on "a!es) allo"able
deductions) conditions for deductions) cash
deposit to ans"er for loss or dama!e and clarifyin! that it is
only in private security a!ency "here the practice is
reco!nied or allo"ed.
,t states in the Labor Advisory No. 11 that employers cannot
limit the freedom of the employees on ho" they "ould
lie to spend their "a!es.
o"ever) the employer is allo"ed to mae deductions from "a!es of
the employee "hen a.3 the deductions are
authoried by la") such as insurance premiums advanced by the
employer in behalf of the employee) union dues
"here the ri!ht to chec- off has been reco!nied by the employer
or authoried in "ritin! by the individual
employee himself herself) b.3 the deductions are "ith "ritten
authoriation of the employees for payment to third
person and the employer a!rees to do so) provided that the
latter does not receive any monetary benefit) directly orindirectly
from the transaction.
Deductions or re5uirin! cash deposits from the employees to
ans"er for reimbursement of loss or dama!e on tools)
materials or e5uipment supplied by the employer is allo"ed in
private security a!encies. o"ever) for deductions of
such nature to be valid the follo"in! conditions must be
observed6 a.3 7he employee concerned is clearly sho"n to
be responsible for the loss or dama!e) b.3 7he employee is !iven
reasonable opportunity to sho" cause "hy
deductions should not be made) c.3 7he amount of such deduction
is fair and reasonable and shall not e8ceed the
actual loos or dama!e) d.37he deductions from the "a!es of the
employee do not e8ceed 209 of the employee:s
"a!es in a "ee.
,n the event that a private securi ty a!ency re5uires a cash
deposit from its employees) the ma8imum amount shallnot e8ceed the
employee:s "a!es in an amount "hich shall not e8ceed t"enty percent
of the employee:s "a!es in a
"ee. 7he full amount of cash deposit deducted shall be returned
to the employee "ithin ten ;103 days from the
employee:s separation from the service.
No other deductions from the "a!es of the employees or cash
deposit bond shall be re5uired by the employer
"ithout e8press authoriation from the 'ecretary of Labor and
Employment throu!h an advisory or !uidelines.
Deductions made from the employees: "a!e for company uniforms)
cash deposits for loss or dama!e) personal
protective e5uipment) capital share or capital build-up in
service cooperatives) trainin! fees and other deductions not
included in the enumeration above) are unauthoried.
7he D/LE-%A* ur!ed employers to comply "ith the noninterference
in the disposal of "a!es and allo"abledeductions in compliance "ith
the !eneral labor standards.
%LEA*ED
